Banking Licenses

A banking license is a prerequisite for a financial institution that wants to provide banking services, such as taking deposits from the general public. A non-banking financial company is an institution that provides banking services without meeting the legal definition of a bank, such as holding a banking license.

The advantages which a bank can afford are quite distinct from those of corporations, trusts or even foundations. For the more sophisticated client, these unique benefits offer additional financial empowerment and freedom, privacy and favorable tax treatment.

Through a bank, you may access the international marketplace for your capital raising endeavors. Rather than secure capital personally for your projects, you may do so in an institutional capacity through your own personal bank and the deposits it receives. If you have a business currently in operation, your corporation can hold its assets in its own bank to secure additional privacy, rather than have the funds held in an unrelated depository. This arrangement will also facilitate money movements between subsidiaries of your corporation.

It is possible that the operation of the private bank could itself become a profit-center. Offshore banks may pursue investment activities from which on-shore banks are prohibited, such as underwriting. Additionally, you may utilize your offshore bank to provide captive insurance or real estate brokerage services.

Located in a jurisdiction outside your country, the activities which you conduct through your private bank will be more confidential and secure. You will be able to extend the same privacy to your clients, along with the other benefits you can offer, such as letters of credit to third parties. A final measure of security is that offshore banks in many jurisdictions offer confidentiality with respect to ownership.

From a tax perspective, bank profits are generally not taxable to the owners. Further, in some jurisdictions, there are treaties which make banking easier from a withholding tax perspective. Where there is a treaty in effect, there is little or no requirement of withholding.

It is possible to set up a bank without the need to maintain a physical presence within the jurisdiction other than that which can readily be provided by a service company.

Some things you can do with your own offshore bank

1: Set up your own banking instruments (e.g. bonds, securities, etc). These can be used in a variety of ways not to be covered in depth here due to space limitations. You may issue letters of credit for yourself, certificates of deposit, provided funds are indeed there (don't do it otherwise, as this would qualify for fraud in most jurisdictions!), letters of recommendation, etc.

2: Boost your corporate image by retaining your very own bank;

This can facilitate business no end: whether you are involved in import-export trade, in industrial manufacturing, in up market financial services, or simply want to impress your business associates and gain a cutting edge against your competitors – an offshore bank is probably the most powerful business tool money can buy.

3: Grant yourself constructive credit ratings

Fed up with hopping around, currying favor with loan sharks and paying exorbitant sums to “credit repair” agencies that can't really do a thing for you anyway, except sing sweet, harmless odes to deaf ears? Why not do it the banks' way instead? With your own offshore bank, it's a totally new world to explore – grant yourself the credit rating you deserve and make good use of it in your other financial operations.

4: Grant your own loans and mortgages

A nice way of legally funneling profits offshore and minimizing on taxes! Once you sign up, we will show you a unique insider strategy how to reduce your tax load and even say goodbye to taxes forever.

5: Seize your own assets before your creditors do

Don't twiddle thumbs while the vultures are blithely hacking away at your life's work: with our insider strategy, you will be able to employ your bank to lay its hands (i.e. yours!) on your assets before anyone else does. Buy out your own debt for a song, stage your own \“friendly self-takeover\” and make exorbitant profits – absolutely legally, too, provided you know the proper way to do it!

Few Tips

• For a restricted license - St. Vincent, Samoa or Nauru.
• For an unrestricted license - Antigua if cost is an issue, Gibraltar if cost is unimportant.
• Irrespective of the jurisdiction in which clients decide to proceed it will be necessary for them to produce, 1: References from a leading bank, leading firm of lawyers and leading firm of accountants on each shareholder and each director.
• Police clearances. E
• Evidence to satisfy the authorities that the shareholders/promoter(s) of the bank have substantial wealth and assets.
• A detailed business plan which outlines the type of business that the bank will undertake, the way in which that business will be handled by the bank and estimates of turnover for the first 3 years. This is perhaps the most important document.
• Evidence that the required minimum capital is available.
• Curriculum Vitae's on all directors and shareholders which should show some expertise in running a financial institution/bank.

Source: www.offshoreadviser.co.uk

Pic Source: http://www.carloscevola.com

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